Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock’s true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Autoliv, Inc. (ALV)
Based in Stockholm, Autoliv is a holding company that operates through two principal subsidiaries — Autoliv AB and Autoliv ASP. Autoliv was born out of a 1997 merger of Swedish firm Autoliv AB and US firm Morton ASP. On Jun 29, 2018, Autoliv completed the spin-off of its Electronics business to Veoneer, Inc. Following the completion of the spin-off, the company is focused on occupant safety products.
ALV sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of B. Compared to the Automotive – Original Equipment industry’s P/E of 13X, shares of Autoliv, Inc. are trading at a forward P/E of 12.8X. ALV also has a PEG Ratio of 0.6, a Price/Cash Flow ratio of 9.5X, and a Price/Sales ratio of 0.8X.
Value investors don’t just pay attention to a company’s valuation ratios; positive earnings play a crucial role, too. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.03 to $6.38 per share. ALV has an average earnings surprise of 26.9%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding ALV to their portfolios.
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Autoliv, Inc. (ALV) : Free Stock Analysis Report